We’ve got the whole 7investing team to tackle what we call “7 on 7.” We’ll be looking at seven different investing topics including Apple earnings, what the CDC’s new mask guidance means for the economy, McDonald’s blowout quarter, and much, much more. We’ll also talk what entertainment options have helped us get through the pandemic and we’ll share the financial/investing advice that we think should be taught in schools.

Transcript

Sam Bailey  0:12

Welcome to 7investing Now, a show that teaches you how to take a long term view on investing by better understanding what’s happening in the market now.

Dan Kline  0:23

Good afternoon 7investors and welcome to the Friday, the final day of April last edition of the month of 7investing Now. We have a special treat today. I am joined by nearly all the seven investing advisors. I, of course am Daniel Brooks Kline, I’m the host of the show. I’m being joined by Matt Cochrane, Steve Symington, Dana Abramovitz, and Simon Erikson. Maxx Chatsko is on assignment. Because it’s the 30th of the month and the first is tomorrow. That is what our new pics come out. Maxx is doing a lot of the work necessary to make those picks. So he’s baking a cake with all the picks.

I don’t even know what he is doing. But this is an exciting, jam packed show. We’re gonna do something we call 7 on 7. That’s 7 different investing topics. Most of them are earnings, we’re going to hit a Domino’s earnings ($DPZ). We are going to hit on Apple ($AAPL) earnings with Anirban Mahanti via tape. We’re going to talk a little bit about Apple and healthcare with Simon. We are going to talk Amazon earnings ($AMZN). I’m going to talk McDonald’s ($MCD) earnings. I was trying to do it while dressed as Grimace, but I could not find that costume. Matt’s going to talk about Domino’s and we’re going to talk about my favorite character ever. The noid. Welcome back the noid

But before we do that it has been a very bizarre year. I mentioned on Wednesday show I’m seeing my mother for the first time in 14 months. I don’t think aside from college I’ve ever gone a month without without seeing my mother even while living here in Florida because her sisters are here as well. And that made me think like what did I do during the pandemic? And I’d like everybody to share sort of what entertained them or what didn’t entertain them did you have to do something else during the pandemic?

I know mine and Matt is the same for me it was the Disney+ Marvel and Star Wars shows the first time I felt a tiny bit of normal was at like 10:30 on a Friday night after everyone had gone to bed just watching the Mandalorian. And then later Wanda Vision and then Falcon and Winter Soldier and later this summer Loki it was solitary for me which is how I tend to watch those shows. But it might have been like the only non 7Investing Now hour where somewhere in the back of my head wasn’t, ‘oh crud its a pandemic and I can’t do stuff.’ Matt Cochrane, why don’t you weigh in on Disney+ as well?

Matt Cochrane  2:43

Yeah, absolutely. Same thing for me. It was almost like a family tradition for our Friday nights which was actually kind of cool because linear TV kind of had you know as has gone down so like it was almost like when I was growing up and we gather around the TV to watch TGIF on ABC or something but we were watching Mandalorian or Wanda Vision or now Falcon and the Winter Soldier, which we’re not quite through yet, but like most Friday nights, it was the family and either. A lot of times with Domino’s actually so that was our Friday night tradition during the pandemic.

Dan Kline  3:12

Matt you’re gonna hate the end of Falcon in the winter soldier when Winnie the Pooh shows up. It is an uncomfortable Disney crossover. That is a joke. Of course that does not happen. Steve Symington is it log rolling is it doing that thing where you you climb up a tree and have to cut off a piece what is going on for entertainment in a pandemic Montana.

Steve Symington  3:32

We watched all of the Marvel movies in cinematic order together as a family, every single one of them. So that was great. Now we’ve moved on to Lord of the Rings, and I couldn’t be more excited about that my kids were one of them was excited. And another one was in different than any started and he’s like crying and emotional. And I’m like, Yes, this is good stuff.

Dan Kline  3:53

I had never read The Lord of the Rings because someone told me to read The Hobbit and it’s one of two books I’ve ever gotten so bored with I put down so I saw the First Lord of the Rings having never read it. I went from the movie theater to a bookstore and bought the books and read all of the books in like four or five days. Dana Abramovitz, I know you’ve done something different. You you had some unfortunate pandemic luck, but you are trying to turn lemons plus sugar plus water into lemonade.

Dana Abramovitz  4:23

Yes I am. I’m definitely in the process of making lemonade and have been doing that all year long. So we’re working on saving my business, my little Fitness Studio. And you know, I know you all have family. I’m alone in Houston. My family is in different places. So we’ve had a lot of zoom calls. I also got to experience the whole online dating experience during a pandemic which is quite interesting. I’m taking notes for a book.

Dan Kline  4:55

When I met my wife, there was no online, let alone online dating The Internet was still like academic for use. We of course will take your questions and comments throughout the show. It could be on what we’re talking about. Usually we make a graphic to show you the 7 topics, but we finalized the topics at like 11:54 or something like that. Simon Erickson. What is it? Are you making Grappa? What are you doing during the pandemic here?

Simon Erickson  5:22

Upstream of that, Dan, I’m actually doing gardening. Gardening is something I’ve never gotten into before the pandemic but we have a young child here. And so she’s really into the vegetable gardening and planting the flowers and doing all the fun part. And then it’s Dad that moves the dirt around so that’s an activity we’ve gotten to do together.

Dan Kline  5:38

Simon Can you grow fruit flavored gummy bears because that would overwhelm at my house

Simon Erickson  5:42

Working on it, Dan working on it for sure.

Dan Kline  5:44

I will point out Dana Abramovitz is going to go first here, most of our topics in 7 on 7 are purely investing related. But Dana follows the healthcare world and I will put out Dana, you’re never alone, when you’re part of the 7Investing team, you know, you can certainly rely on all of us, we are more than happy to be fill in family, I can be the super annoying older brother, if you want me to play the role of like older brother who borrows money, like whatever it is, like we could, we could absolutely fill in there.

But we’re going to talk about the CDCs new mask guidance and what it means for the economy. Let me give a few facts here before I throw some questions at you. You no longer have to wear a mask if you’re vaccinated if you’re outside, unless you’re at a concert or some other crowded event, you’re allowed to hold small outdoor gatherings with other vaccinated people. And there wasn’t really concrete guides there. They didn’t say how many people I’m going to an indoor gathering with fully vaccinated family this weekend, except my cousin who’s also battling leukemia is going to stay outside and we’re going to sort of rotate out and see him. So it’s a little different for everybody. But Dana, is this a good sign for business? And that the summer will look, I don’t know, a little bit normal?

Dana Abramovitz  6:54

I certainly think so. I think that it’s good news for everybody. You know, people are, it’s been a hard year for everyone. You know, like, my online dating experience, you guys watching. I don’t even know what that is. I just want you guys talk about Disney and Netflix. I’m like, I don’t know. But ya know, it’s I think people are looking to go back to you know, socializing. So you’re having that, that, you know, indoor gathering with your family. People want to see their family. So they’re going to be traveling so that they can see their family, they’re going to go out to dinner rents, venues, so that they can do things. And I think that that will be good for business. In addition, you know, people in general are just right. I mean, I’ve noticed a shift in mood people coming into my business, I feel, you know, it’s just just general happiness. And I think that that happiness is is good for business.

Dan Kline  7:58

Yeah, I have to admit, I felt dumb, taking a walk in my neighborhood with no one around me wearing a mask. And after a while I started carrying the mask instead of wearing it. Now I still have one of my pocket in case I hit like a group of people that stops the traffic. But if I’m just walking by someone, you know, quick wave Hello, not not wearing the mask, and it’s 88 degrees and super humid here. So that is great. So Dana, as of Monday, more than 140 million Americans 42% had had at least one dose, and about 29% has had a full course either one dose of Johnson Johnson or two doses of the Pfizer vaccine. Do you think we’re gonna reach herd immunity everybody wants it herd immunity?

Dana Abramovitz 8:44

It’s hard to say. And you know, I, I want to be optimistic. I don’t want to be you know, the downer person, especially on a Friday, but there’s still so much that’s not known. Right. So the more and more people that get vaccinated, yes, we’re moving towards herd immunity. It’s just that we don’t know how long the antibodies are gonna last. We don’t know how quickly the virus is going to continue to vary, and all the different variants and whether all the vaccines will work with all the different variants. And so it’s it’s hard to know, but But certainly the scientists are collecting the data doing the research. And that’s one of the most fascinating things for me is this is a huge, worldwide research experiment, right. And we’re collecting data and we’re learning as we go, and scientists are learning and sharing that knowledge with the community. And that’s really helpful.

Dan Kline  9:47

It is worth noting, just so we don’t scare people that the initial data on the variance has been very strong. The other issue is supply. If they decided and I’ll go on the record, Maxx Chatsko does not think we will need a third, a third dose of a vaccine that is Maxx’s opinion, he has a better scientific mind than I do. The CEO of Pfizer has said we might. But if we do supply chains are in place, it will be a walk to CVS, you can walk in, it’s actually a concern here in Florida, that there are available appointments not being taken.

And the question is, is that vaccine resistance? And we’re not going to answer that, because that’s a political question, or is it what I think it is, is more just like, yeah, as soon as it’s super convenient for me at the CVS I’m at, then I’ll get it. I know, that’s how my personal trainers attitude has been, because he can’t really schedule things, because his job makes it very, very difficult to do that one final question, Dana. And this really relates to the economy and Mother’s Day, coming up and travel and all the other things, but are you worried about people, you know, sort of letting down their guard and, you know, going to packed events indoors without masks and licking strangers or whatever it is where, you know, we were eager to get back to doing?

Dana Abramovitz  10:58

Not really, and because we’ve gone through so much as a community at large, I don’t think that we’re going to allow ourselves to slip back the worst of it. And certainly, we’ve learned a lot, I think people are much more cautious. I certainly know where six feet is from standing. You start to feel uncomfortable if you’re, you know, too close to somebody. So I think that a year of behavior, we’ve kind of learned how to do things. I do think this is an opportunity to make improvements. Right.

So, one of the reasons I think that the virus was able to spread so much is that, like we’re as a society, just kind of, we’re doing things poorly, right? You know, we were stressed, we weren’t eating, we weren’t sleeping, we weren’t exercising, and it really affected our immune systems. And so I think that we kind of learned from that. And so hopefully, now we can, you know, get the sleep that we need. Rest a little bit, you know, prioritize the things that are really important to us. And if that means you’re spending time with your family, then you’re going to find a way to do that. You guys have all spent time with your family. So I think that that will continue.

Dan Kline  12:28

I’m very eager to spend time with the world. And I do think there are some things we’ve learned. If it’s flu season, and you’re susceptible, wearing a mask will become publicly acceptable. Maybe not in Florida and Texas, but in many of the parts of the world, it’s at least not gonna look weird. It’s not going to look like you’re robbing the 7-Eleven, which I think was the fear in the early days of mask wearing that most places actually didn’t allow you to wear a mask. There were rules where you couldn’t wear a mask, because people wear masks to avoid being arrested when they rob a place that is no longer how we’re going to be doing it.

We are going to move away from Dana and Dana, I know you have to drop out at some point. So whenever you do not a problem. We’re going to head into a bit of an earnings-a-palooza. We would love your questions, your comments, say hello, tell us the first thing you’re going to do once you’re fully vaccinated and the world is normal ish. But let’s go to Steve Symington. Steve, Amazon had a crazy good blowout quarter. That’s a theme we’re going to be hitting over and over again.

Steve Symington  13:30

Yeah. Amazon. It’s quarter was absolutely insane. And it’s one of those things where you look at the stock price, it kind of rallied to a record high today. It’s been interesting because you look it’s only up like one and a half percent. But you know, 3000 and change per share for people who held a long time ago. I mean, this is this is one of those moves where it’s moving up more than their cost basis.

But the quarter was was ridiculous might be the best word. I mean, we found that sales come 44% year over year to $108.5 billion. That’s three months of sales, right? Net income more than tripled to $15.79 per share. We all know how Amazon is sending income and scarcely turn a profit for the first 20 years of public life anyway, but both of those numbers basically crushed estimates. AWS revenue, kind of a high margin source of revenue now. That’s beautiful for them climbed 32% to 13 point 5 billion. That’s a $54 billion annual run rate business. operating cash flow is up 69% to $67,.2 billion free cash flow up a couple of billion dollars to $26.4 months people these numbers are absolutely insane.

And it really doesn’t show any signs of letting up. Of course growth is going to decelerate on a year over year basis. But in the second quarter, they see it coming in around $110 billion to $116 billion. Partly because they’re moving Prime Day up from October to they push back last year because the pandemic but really incredible growth at scale, no signs of sort of slowing down or seeing this kind of like the pandemic easing, we’re not going to buy as much for Amazon. That’s just not the case.

Dan Kline  15:10

Steve is some of this just that Amazon has captured new customers and intensified loyalty with existing customers. I mean, I’ve always been a big Amazon buyer. But I’ve ordered three things today, I have food coming from Whole Foods that will arrive at some point after this show. I bought a battery for my key fob, like, Is it just sort of like Amazon is now just really a part of our world?

Anirban Mahanti  15:31

Yeah, I mean, it really is. And now I have the little mermaid song stuck in my head. Thanks for that. But the 175 million Prime members, Jeff Bezos said , which is just incredible. Each of them paying What is it? $129 a year I don’t even remember because I just sort of thoughtlessly let it renew because it’s a no brainer. Right. And and then you add in AWS, you know, this kind of fast growing high margin cloud business into the mix. And Amazon’s a Titan, it’s not going anywhere, anytime soon.

Dan Kline  16:00

I recorded a podcast this morning with our friends over at the broadcast retirement network. And what we talked about was the fact that by 2025, Amazon will be a bigger retailer than Walmart, and it has a trajectory, that there’s almost nothing Walmart can do to reverse. Now, that doesn’t mean Walmart’s not crushing it. They absolutely are, but you are going to see so we are going to keep the earnings Express rolling.

I talked a couple of days ago with Anirban Mahanti on Apple earnings. So if you are ready to play that Sam Bailey, that would be fabulous. Anirban Mahanti thank you for joining us albeit via tape to do 7 on 7. And we all got very excited when Apple reported and this is the second crazy amazing Apple quarter. I haven’t really looked at the numbers that much I had a little bit too much show prep to do since they came out. But I remember last quarter when they came out, I thought oh my god, this is the best earnings report I’ve ever seen. Like, every category is up double digits. And this quarter is arguably better. Give us some of the top line numbers.

Anirban Mahanti  17:08

You know, so here’s the thing, revenue was up 54% Okay, this is a $2.2 or $2.3 trillion. Whatever market cap company 54% revenue up, every segment was up double digits. iPhone was up like 60% I think iPad was up like 70%. Mac was up 70% iPad was up 78%. So you know, Incredible numbers,

Dan Kline  17:33

Alot of Mac buyers who are right now really angry because like me before, like super cool looking new Macs. And I thought my iMac was like the sleekest thing in the world. And now I feel it’s like an old like cabinet television. Like, like a 13 inch screen. I am disappointed about this. But um, so the numbers are great. Let’s talk about their cash on hand. They are sitting on like, buy a nice country level of cash more or less.

Anirban Mahanti  18:01

Yep. Yeah. So they have I think $90 billion net cash if you if you back out the debt. They announced a huge buyback. I think they announced exactly $90 billion of buyback initial buyback authorization to increase the dividend. What I think they basically tried to do is they tried to get to cash neutral pretty quickly. I think, you know, Apple has had like a wonderful run.

I think one thing I’ll point out, though, is this quarter looks even more amazing. I mean, I’m not taking away anything. Those numbers are astounding. And the earnings, the cash flow and the margins. They’re all like they’re just astounding. And they’re at scale. But they’re in comparison with March 2020, which was like the peak of pandemic, like fighting closures

Dan Kline  18:42

Like fighting for toilet paper in stores not open. And yeah, that being said, that quarter actually wasn’t bad, because there were all the kids at home that needed iPads. The one question I have on this report is, is why are iPad sales up so much? I look at the iPad and we’ve talked about this. I don’t need it. Like I have a 12 inch MacBook I have a you know, I have a light a lighter MacBook that I travel with. And I have a phone I haven’t touched my iPad other than like during a hurricane to watch movies on as an added device. who’s buying these?

Anirban Mahanti  19:16

Well, between the creatives of the kids and the people who think they must have it, right? I mean, here’s my problem, right? Every time they announce something new, I feel like I need it, even though I don’t need it right. I mean, I’m just addicted to Apple, I’m sure the other addicted users to Apple, and then there are a lot of other useful use cases. I think, again, like I think they find buyers. I think one of the big things that has happened in the pandemic, I think is that they’ve expanded their horizons and brought in a lot of new users, which is just basically going to juice the ecosystem going forward.

Dan Kline  19:47

You’re talking to someone that has two Mac laptops, and an iMac an Apple Watch an iPhone. Both my wife and son have have iPhones as well. They don’t have Mac’s I couldn’t justify that expense, my wife uses a PC at work, my son is careless, so I wasn’t particularly going to let him use an old Mac of mine or justify that. But et’s talk about services, their service line, it’s up 26%. And that’s an area where they said, we’re going to grow this and I love when a company tells you what it’s going to do. And then actually does it. I’m sure you know how rarely that actually happens.

Anirban Mahanti  20:26

Yeah. So I think again, like Tim Cook has been a fantastic steward, a very underrated CEO, he has just done a fantastic job post Jobs. Services has been a great I mean, that’s the thing, right? The ecosystem grows and the the number of users grow, that allows them to grow the ecosystem of services, which makes the apple whole ecosystem even more pleasurable to use. And yeah, it’s just working as planned. You know, again, the thing is that, you know, you and I might have different views on Apple TV plus, what maybe other people actually like it.

Dan Kline  21:00

I don’t think it’s driving one subscription. I don’t think it’s selling one iMac. So I feel like identity play, it’s really cool to be in the TV business. I feel the same way about Amazon Prime and ‘The Boys’ was probably my favorite show of last year. But you know, what, if whoever created that had put it on, on HBO Max or any other format, I would have found that show. So I just feel like there’s not a need, I think podcasts makes more sense to actually drive users to Apple. But as we run out of time here, is Apple stock a buy and I I know it’s a great company, but it’s also a $2 trillion valuation.

Anirban Mahanti  21:37

Yeah, like I personally own Apple. So, you know, I think Apple is a great portfolio, like a core holding to have, it’s not going to shoot the lights out. But I think it’s a market beater. Going forward a $2 trillion is just a number. You know, we could say like, you know, the s&p 500 goes up over time, so that the 2 trillion, you know, could become 4 trillion going forward. But just, I think one thing that, you know, Simon Erickson was saying, how many shares of Apple bought back, right, but back about 25% of the shares in last. I mean, as the shakeout keeps decreasing, basically, there’s more value created for the additional for the remaining shareholders. So I think long term shareholders are going to just do just fine with that.

Dan Kline  22:18

I don’t own Apple directly, but I consider that I own it same as Amazon, because so much of my 401k if you look at the various tech funds I’ve selected there, they’re very heavily weighted to Apple and Amazon and and probably Facebook and Google to which are not companies. I’m as bullish on. That being said, Anirban Mahanti. I want to get back to the show. So thank you for doing this. You’ll be on again at the end of the program. We appreciate it. We’ll see you next time. Anirban Mahanti. Thank you for doing that.

I love talking to Anirban. He is so smart and comes from a different perspective sometimes than I do. We follow a lot of the same companies. And we think about them differently. We’re gonna have him on the Monday show sort of answering some of Steve’s comments on Tesla earnings. we taped that for today, but because we have so much of the team here today, but tomorrow is May 1, May 1 is when our new picks come up. Simon Erickson, what do you taskus with each month? The core, the absolute heart of 7Investing?

Simon Erickson  23:18

Yeah, we, every month, we have the same question, which is what’s your best idea? And I got everybody on the team. I say, what’s your best idea in the stock market right now? Let’s not throw out you know, is there any takers out there that we are kind of interested in? It’s like, what is the best pick for investors right now. And we have different perspectives on that, Dan, you know, sometimes we pick value companies, sometimes you pick big tech companies, sometimes you pick small healthcare companies. And then we kind of hand the baton to our subscribers and say, what is the right pick that we have done the research for you, that for you.

And we think that investing is such a personal thing, and different people have different risk tolerances and different markets they’re interested in. We’d like to do a lot of the research, present a full buffet of options with 7 ideas every month, which represents our 7 best ideas for each of the advisors on this team.

Dan Kline  24:02

And we’re not telling you to buy seven stocks every month, what we’re saying is, I liken it to movie reviews. If there’s a movie reviewer, who you always agree with, there’s a pretty good chance that their opinion on a movie you haven’t seen is going to be correct for you. So if you look at what Steve invests in, and it sort of is your risk portfolio, it’s stuff you’re interested in, well then you use Steve’s research maybe something like what I cover in retail and entertainment and a little bit of travel spaces, maybe that’s an area you’re not invested in and you’re willing to take my word for it and you find a stock or two that I pick I buy all of Maxx Chatsko stocks because they do add risk to my portfolio because I personally am not all that risky.

So how do you subscribe? This one is very simple. First you have to get some Dogecoin then you have to go in  no — you go to 7investing.com/subscribe. It is an easy registration, it will cost you $49 a month or $399 for a year, I am not a mathematician. But there are 12 months in the year there is 13 months if we went by the Hebrew calendar, but we do not. There’s not always 13 months, every few years, there’s 13 months. In our case, we go by a 12 month calendar. So that is two months for free. This is amazing investing advice. This is a well schooled team. I won’t go through our credentials, but they are on the 7Investing website if you want to know who we are and why you should trust us. I trust us I have bought stocks because of what we do. So this will not be an off day for Steve savage tonight and Simon Erickson tomorrow, tomorrow will be a busy, busy day. We welcome you to come along for the ride.

But Matt, we talked a little bit about the top of the program about how the Noid is back, the noid is back into commercial and I really enjoyed it. There is some sort of crossover between the noid and Crash Bandicoot. I don’t know who that is. But Domino’s we talk a lot about letting your winners win. I don’t own Domino’s because I don’t like their pizza. And that might be the dumbest decision I’ve ever made. Because Domino’s has shown it is a you know, like Bret Hart. It is the excellence of execution. They do everything well, where frankly, if they switched out their pizza with a cardboard box, I don’t think it would impact their sales all that much. But their quarter was was beyond good, right?

Matt Cochrane  26:24

Yeah, once again, I mean, Domino’s just delivers no pun intended. Global sales were up 14%. That’s adjusted for foreign currency, they opened 175 net new stores, that included the one store closure they had. Here’s where it gets impressive, Dan, to your point about how they just continue to deliver great earnings quarter after quarter. US same store sales growth was up 13.4% that marks 40 straight quarters of positive comparable sales growth. International same store sales was up almost 12%. That’s 109 straight quarters of international same store sales growth, that’s about 28 years of positive international same store sales growth. There EPS was actually down because they were lacking some tax benefits from last year. But if you adjusted for that they were up about 22%. So just another great quarter from Domino’s.

Dan Kline  27:22

So man, I’ve always watched that number that how many straight quarters? Is this going to be the quarter a year from now when there’s no pandemic and we can go out for better pizza? Or maybe go to other places you and I met at a pizza place last week? Do you think there’s the possibility that they just have a flat or even a down quarter? Because these numbers and that does not affect their long term trajectory, Let me let me be very clear about that. But do you think that’s possible?

Matt Cochrane  27:47

Okay, so if if it was going to happen like it, there’s a good chance that street gets broken this year, right? Because they’re coming up on some incredible comp numbers because during COVID when people could not go out to eat, they ordered takeout or delivery and Domino’s just dominates that category. Right. However, I don’t think it’s going to happen. I you know, during the conference call, they talked about like a few levers they can pull. So like first of all marketing. They did not aggressively market this last year. They didn’t have to they didn’t have to aggressively market this last quarter. So yes, the noid was back Dan to your point, but they would they you know there’s there’s parts during the year where they had normally aggressively market. They did not do that this past year. So they think they can pull that lever

Another one is carry out. So they talked about this a lot. Carry out you know, numbers were affected by COVID. People didn’t want to go out the house to pick up food you know, they just want to call in to deliver they think so they think they carry out business can pick up there’s a couple things driving that they they have carside delivery now where you just parked in front of Domino’s, you click on here on their app, and where your car information’s already in and they just bring out the pizza. And even in the app you can put in like put it in the trunk, you know, or put it in the rear passenger side so you can mark exactly where you want people to come in. It’s contactless, you just pull up into the parking lot and they bring it out to you.

And then you know, finally, like their fortressing strategy. So like their fortressing strategy is basically like they are increasing their store presence in existing markets. And the thought there is that they’re going to provide better service to its customers by shrinking the geographic coverage per store. So like basically, they’re opening their stores closer to each other. And that one that speeds up delivery times. And that gives customers more convenient locations to choose from when ordering carryout. Now, this does cannibalize existing store sales a little bit. But the idea is that it will increase Domino’s market share not just with competing pizza chains, but with all quick service restaurants.

Dan Kline  29:43

And Domino’s is also a relatively inexpensive build. There’s not a lot of technologies in a Domino’s. It’s sort of just like a pizza conveyor factory, and they have to put the boxes together. This is a company and I’m going to talk about McDonald’s earnings next I’m gonna skip over Simon and do Simon in the sixth segment so we can get every out but I think there is a major parallel between Domino’s McDonald’s and to a similar extent Starbucks though Starbucks did take a hit from restaurants, you know, the dining rooms being closed.

They all invested heavily in technology before the pandemic. This wasn’t, oh my god, a pandemic hit. How are we going to deliver. Domino’s is best in class delivery. Before this, they did the work. The Domino’s Pizza tracker actually has so many patents and copyrights, it makes it really difficult for any other rival to show you the progress of your pizza or your delivery order. BJs the restaurant chain does something kind of similar. And that’s the closest one I’ve ever seen.

So Domino’s has invested all along and you see this. Good companies. I’ll say that a Target, a Walmart, a Dick’s Sporting Goods, a Best Buy whoever it is, they weren’t invested because they saw a pandemic coming. I you know, maybe there’s people in the health space that saw it coming. Maybe there was a in case of emergency break glass planned somewhere, but they were investing because Domino’s wants to be able to bring you a pizza when you’re at the beach, they can do that. Now, Domino’s wants to be able to like find you at like, an outdoor concert or, or who knows what and bring you a pizza. They can’t quite do that. But they’re getting there. So you know, and McDonald’s is the same way. So I’m gonna segue a little bit here into my segment.

Matt Cochrane  31:17

Hold on Hold on. Real quick. Do you know the difference between a good pizza joke and a bad pizza joke? The delivery.

Dan Kline  31:27

Dear God. Simon Erickson. We will be taking nominations for a new seventh advisor here at 7Investing. No, just kidding. Of course here. We would like your questions and comments. I know it’s a weird show to comment on. We appreciate so many of you watching. You don’t have to comment Daniel Kern says, “A Bret Hart analogy. I love it. Please do the rest of the show. In a macho man voice for good measure.” Oh, yeah. Not gonna be able to do that one. But of course perhaps after the show Simon will snap into a Slim Jim.That being said, Yes, I am a closet pro wrestling fan, which is a weird thing for a semi intellectual snob to, to admit live on television. But I’ve talked about this before.

So McDonald’s has actually beaten the performance of before the pandemic. So you can eat inside a McDonald’s here in Florida, there’s capacity limits, they’re not all open. But their same store sales was 13.6. A good number for a restaurant would be two or 3%. That is a stunning number. And I think you’ll see a parallel between Domino’s and McDonald’s here. You know what McDonald’s and Domino’s are? They’re comfort food. They’re familiar. They’re also cheap, which is which is valuable. They’re easy. But there is just something sort of homey and bringing back college about ordering these foods. I haven’t been to either of these places in quite a long time. But that’s that’s more of fashion of I don’t eat much gluten. Though Domino’s weirdly has the best gluten free pizza. I think it’s a better pizza than their actual pizza. But that is neither here nor there.

Their earnings beat expectations that came in at $1.92 a share. Revenue was about $5.12 billion. And they are being driven by chicken sandwich sales. Why do I bring this up. So a new chicken sandwich that looks like the Popeye’s chicken sandwich has become sort of a de facto thing. There is going to be a problem not just for McDonald’s and maybe not for McDonald’s because they they control so much of the supply chain. But we’re heading into a shortage of chicken in the United States that chickens grow very quickly. So this can be corrected in a few months. But Bojangles, a Florida based up biscuit chain that does fried chicken tenders did not have chicken fingers at 700 of its restaurants this week. This is a bit of a yellow flag for McDonald’s something to watch out. They also expect sales in the following quarter, to outpace 2019.

So this is an investing lesson. And you need to look at what companies are doing to lay the groundwork for future success. I’ve talked a lot about that with Amazon with Walmart. And I’ve talked about it with Kroger because I think with the pandemic ends, Kroger sales are going to tumble because we’re not going to need them as much and they’re trying. They’re investing in digital marketplaces and other things. But I don’t know that they’re going to be able to keep up with that at the level they need to because the infrastructure, Matt, I don’t think it’s really possible to to beat Domino’s infrastructure. And McDonald’s has relied heavily on third parties, but they’ve also built out their own digital ecosystem. Matt is that just like an unassailable advantage for Domino’s?

Matt Cochrane  34:40

I don’t know it’s unassailable. It is certainly difficult. Like to your point Dan, Domino’s actually their own point of sale system so that they could integrate technology into it better and that’s just like, as far as I know, that’s unheard of. Right. I mean, that’s just like that’s, that’s a very unique advantage. They take it very seriously. They’re just never been afraid to experiment either like they have a partnership now with Nuro, a robotics company out of California, and they’re delivering autonomously with these robots pizza to certain places in Houston. So Domino’s, like they know that might not be the future, but they’re not afraid to experiment and they built their own stuff in house. That’s an incredible advantage, no doubt.

Dan Kline  35:24

In a minute, we’re gonna take Nick’s question, then we’re gonna get to Simon. But I don’t know if any of you watch Saturday Night Live regularly. But last year, they did a skit where they were selling like, essentially fake people. So you could justify your giant room service order. So when you’re ordering like three Sundays and two appetizers and two entrees, the person delivering it would see like fake people in the background. I actually think ordering via app makes it more likely that you are not going to make good choices. And that is good for Domino’s, that is good for McDonald’s. Like, I know, like, I’m not the skinniest guy in the world. If I walk into McDonald’s, I’m probably self conscious about what I’m ordering. But if you’re ordering via the app, but it’s two in the morning, and you’ve maybe made some bad decisions with what you’ve had to drink, you are absolutely adding a mcflurry to your McDonald’s order or getting that two for $4 sandwiches deal or whatever it is.

So I think the app, you cannot downplay how much it gets rid of the shame factor. Not having to interact with the person is going to be good for sales of things we don’t necessarily want to be seen to publicly consuming. We’ll take that comment from Nick, Sam Bailey, our director behind the glass, we appreciate that. “Is there any truth that McDonald’s operates like a real estate company and the income they report is only a small percentage of stores?” So McDonald’s does report sales you have to get into McDonald’s is largely a franchise company, at least here in the US, which is kind of an unassailable model because they still do well, even if the sales are down.

But McDonald’s is locked in like a constant battle with its franchise holders. The franchise holders are very powerful. So something like all day breakfast, which corporate would like to bring back, the franchise holders don’t like the added expense and the difficulty of doing it. McDonald’s had to really fight with its franchisees to spend the money to do what they call store of the future, which was the mobile ordering kiosks, some new equipment being able to to have digitized drive thru and the AI technology they’re using.

So McDonald’s is more so than any other franchise company because of the size of some of their franchisees, they actually have to kind of be in a partnership with them. But yes, it is a very, very good business model. That being said, we are going to segue into Simon Erickson with our sixth topic here on 7 on 7. And Simon, you know, I’m really interested in this one because I use my Apple Watch to monitor various aspects of my health but you wanted to talk a little bit about Apple and their health, their health care kits and other products.

Simon Erickson  37:51

I did Dan, I’m going to be a little bit controversial and contrarian in this segment. So please feel free to send any hate mail to info@7investing.com or @7innovator on Twitter. But you know, I’m thinking bigger picture about Apple on this. Anirban did a great job of recapping the quarter, but we’re buy and hold long term investors at 7investing. Every position we take on the scorecard we’re letting it run indefinitely. And so when we’re talking about Apple, we’re not talking about Steve Jobs and Steve Wozniak messing around in Woz’s garage in Cupertino California anymore, right? We’re talking about a company that’s churning out $100 billion a year in operating cash flow, and is doing $100 billion a quarter in revenue. That’s 11 zeros, right?

This is getting up into the pace of the total amount that the world is spending on oncology drugs every year is the amount of cash flow that Apple’s putting to work every single year that it has options for management to use. Cash Flow is what’s going into the bank after it pays all of its bills. And what does Apple been doing with it? It’s been buying back shares, and it’s been paying a dividend. In fact, in just this most recent quarter, Apple turned out $24 billion of operating cash flow. And what did they spend it on, they spent 23 billion of it on share repurchases, and on dividends, and apples doing that because it doesn’t have internal projects that it thinks are profitable enough to put that money to work right now. And the long term growth investor in me acknowledges that Apple’s an awesome company, it didn’t get to be a $2.2 trillion company out of nowhere.

But on the other hand, I’ve got some questions about this, right. There’s a lot of very good analysis that says that we might have pre COVID hit peak smartphone. for Apple, at least, you know, we saw fantastic year over year growth as Anirban pointed out, but again, that’s compared to last year, where the numbers were much lower because we were in the middle of the pandemic. I don’t think that we’re going to see 65% growth in iPhones and iPads next year, year over year. I think that we’re kind of just start getting to where its core business of consumer devices is starting to tap out and some My question as a long term investor is what is going to move the needle for this large, large company, if it can’t continue to focus on selling $1,000+ phones with more and more gadgets attached to them,

Dan Kline  40:11

Simon, let me jump in here that Apple acknowledges that it’s in a supercycle and the way iPhone sales work, which at times have been about 70% of Apple sales, the Mac numbers as huge as they are the billion dollars in watches, those are actually kind of irrelevant compared to the iPhone numbers. What happens with the iPhone is every few years the people who trade in their phone on a two to four year basis rather than people like me who do on an every year basis, there needs to be a big change the catalyst now was 5G. This was the first iPhone with 5g. So we don’t know it is it is very likely next year is a down year for iPhone sales. We don’t know if it’s gonna be two years or three years or four years. So there will be absolute lumpiness. But Simon, where do you expect the growth to come from?

Simon Erickson  40:57

Yeah, I think that Apple publicly acknowledges that it’s going to have to be in healthcare. This is the next big horizon for Apple to grow into. It’s a $4 trillion market in the United States alone. And what’s more important is what’s most important to to people when it comes to health care. I mean, Dana can answer this question in her sleep, its privacy and its the user experience. It’s becoming more and more consumer facing and less and less just the hospital takes care of everything for you. And I think this is the big opportunity that Apple acknowledges.

But I’m starting to think about, you know, if Apple is really churning out $100 billion of cash flow, and every tech company on the planet wants to get into healthcare, including Facebook, including Alphabet, how can Apple make a really, really big splash being its 2 billion plus people who have bought a device globally? And the 100 million plus that have an Apple Watch purchased already, Dan I know you’re a large percentage of that number. How do we get the momentum behind this field? Because I really think that is important.

And I think that Apple is going to have to pursue an acquisition strategy on this one, I think that they’ve tried to kind of build this from the ground up saying, Hey, we can do pulse oximeters. We can do blood pressure monitors, we can do fitness apps, you know it all part with part of the iPhone, I’m sorry, the iWatch the Apple Watch, rather. But I think that really you want to grab a much larger user base, tens of millions of people that are plugged in to telemedicine, to remote monitoring, to proactive preventive health care. And Apple’s got a really, really big opportunity if they do this, right. But on the other hand, this is really bad. In my opinion, if Apple drops the ball and falls a step behind Alphabet, who is also aggressively going after this field right now.

Dan Kline  42:35

I actually think Amazon is the leader at the moment, Amazon is rolling out its employee based health care to other companies in the areas where it operates. I think they’re sort of farther along in testing. Now Apple is the leader in devices. There’s a lot of info. Simon, do you think they’ll it is a kind of a long question, do you think they’ll buy Teladoc, which would be the big giant play here, or they’ll do the typical Apple thing, where for like two years, every month, they’ll buy one like 50 to $200 million company you’ve never heard of, get rid of their product, and all of a sudden that product becomes a feature somewhere in the apple eco-universe. That’s what they’ve been doing to grow a lot of their other spaces.

Simon Erickson  43:12

Yeah, I think Apple and Tesla have followed the same model, Dan, which is basically grow it yourself, right? Elon wants to build everything from scratch, including the wires that he configures himself personally, Tim Cook has done the same thing. Compile your your supply chain, make it super efficient, but still make small acquisitions that you grow organically. But some of the best acquisitions we’ve seen whether it might be YouTube, or Instagram, or you know, Facebook and Google have done a fantastic job of buying large user bases, plugging them into the existing ecosystem, and then letting it take off from there.

I think the question for Teladoc right now is can that really integrate with Apple suite, you’ve got the Apple Health kit, which is kind of the consolidated group of all the data itself. And then you’ve got a software development kit on top of that for people to build things on top of. But I think that part of this has to be you get a user base, you get it plugged in, you get the platforms playing nicely with one another.

And then Apple starts giving away free devices, you know, whether it’s something that can monitor your blood pressure, or can monitor your heart rate or something that’s included with every Apple purchase of those 1.2 billion people that are buying Apple devices, get them in this ecosystem, get them willing to contribute data, and Apple takes the hit on the hardware itself. But I think this has to be the next horizon for Apple to go after.

Dan Kline  44:27

I think Apple is going to use that model, but I don’t think they have to give the device away. I think people will actually pay for the device. Now that might mean devices that aren’t building in a profit margin to get more of them out there. If you can see what the Apple Watch already does, it tells me my heart rate, it can do an EKG it can do all sorts. I fully expect we’re a generation or two away from blood pressure from the technology exists to you know, tell you whether you’re dehydrated though, the people selling that right now are Gatorade so that it feels like gatorades going to pick up dehydrated More often than I might actually be dehydrated, but that technology exists.

So I think you’re gonna see an Apple Watch that can tie into telemedicine where you give your doctor permission to look at your vitals so, a lot of what you do when you get a physical, it’s just like really basic, like open your mouth and say ‘ah,’ take your blood pressure and I do think Apple’s going to do a lot of that. Simon Erickson, this is something we are going to be following this might be and Dana, this is why we were so excited to have you on the team, Maxx Chatsko as well. I think this is probably going to be the story of the next decade alongside space exploration, those are probably one, two for where humanity is going. Assuming the zombie apocalypse does not happen and murder Hornets know their place and stay in check.

We’ve got one more topic here on 7 on 7. If you have any last questions you’d like to ask because it could be anything. We’ll have a few minutes at the end of the show. But we appreciate you watching 7Investing Now. And I’m going to go around the room. I’ll go first because I don’t know that Dana, and Dana if you want to opt out, I don’t think you were expecting to be here. So feel free to pass on this if there isn’t one you’ve thought about.

But what investing lesson do you think needs to be taught either at school or by parents to their kids? And for me, the number one thing and I have a kid who can be very material, it is live below your means. One of the things we have always done is not spent every dime we could on a house. Not purchased new cars. Can I afford a new car? Yes. Do I drive a new car? No. Because if things go wrong, there is more of a cushion there. If an opportunity comes up to invest or to go on a trip or who knows what living below your means, allows you to do that. I will let Matt Cochrane, you have the most kids. So we’ll go by like most kids to least, Matt, what advice do you want to pass on to kids?

Matt Cochrane  46:51

Well I think your lesson is a great one. Dan, definitely live below your means is right up there. The other thing I would say is the magic of compound interest. Right? I mean, like, one, I think there’s there’s two great lessons from that. Well, it’s not intuitive to know to understand at least it wasn’t for me, like the magic of compound interest. When like I was really trying to grasp it, I almost did it by hand for like several years out just trying to really, really understand it. And one, what that does is it really incentivizes them to start young, like get that time on your side, because that magic you don’t see right away, right? Like it happens in the second, third, fourth decades of investing, not the first.

And, two, it’s encouraging to know because when you start off, and I remember this, I remember starting off with a couple $1,000 to invest. And when you have $2,000 in the market, you make 10% your first year, you made 200 bucks, which you can really be like, well, what’s the big deal I made 200 bucks, like all that for $200. And then you know a little bit later on a few years later, it’s 20,000 bucks, and you made $2,000. And then you know, on and on and on. And then soon you have $200,000 in the market and and you make $20,000 that year from your 10% gains. And just to see that and understand that to know that like, okay, it’s starting off small, but I understand that this is going to be a snowball, and that the more I put in now the quicker that snowball is going to get going. So I just think under making sure they understand compound interest.

Dan Kline  48:19

And it’s the good kind of snowball, not the Hostess kind of snowball, if I could go back in time and tell myself anything that would be 16 year old me put $1,000 in the bank, whatever you have to do to get $1,000 not in the bank in the stock market invested. Even if that’s all I did 47 year old B would be really happy it look at charts of what the return is. And we probably should have grabbed one but but we didn’t because I didn’t know what any of us were going to be talking about here. Look at what that $1,000 turns into over 40 years.

Matt Cochrane  48:49

It’s amazing. I look back all the time, I didn’t get started investing until I was in my mid 30s. And I think about all the money I wasted, essentially wasted in my younger days, and it’s a hard lesson to learn. But I hope my kids don’t repeat it.

Dan Kline  49:06

These are lessons we’ve learned. And I hope my kids will learn these lessons. I can’t force them to do it in another year when he’s 18. Right now I can drive it home as much as possible. Steve Symington. Now you have multiple children, what is the one lesson that you’re trying to get across to them or wish they were taught in school? Well,

Steve Symington  49:25

I mean, both those lessons are fantastic already. But one of the big things I’m trying to do with my own kids is to ensure to not be scared of it. Right, don’t be scared of investing. It doesn’t have to be an intimidating topic. And for a lot of people it seems like ‘Oh, the stock market you know, that’s what rich people do.’ This is one of those things that everybody’s kind of scared of doing because they’re scared of losing money. They’re scared of taking risk and I think just really exposing them to investing early and

There’s more tools than ever to do that now. So stockpile I believe it is has a neat little app, where you can actually open up an account for your kids and they can download it and say, I’m the kid logging in and, and pretty slick, actually, that they can look at this and they can track their purchases, and you have some control over what they do, you know. I have a Capital One account, and they’re actually advertising a checking account for teenagers now. And there’s all kinds of tools to really get to where you can say, this is how you get money in a brokerage account, from that checking account. And this is how you buy and this is how you sell, these are the things you should learn along the way. And just little lessons along the way to expose them early and make it so it’s not intimidating.

Dan Kline  50:46

It’s very much like that scrubbed from history episode of The Cosby Show, where Bill Cosby and his family set up explaining to his older son, exactly what things cost by you know, giving them X amount to pretend money, showing them how rent worked. I talk a lot about this with my son, like, he wants to buy things, the second he has money, and I will explain to him, you can do that, because I pay for the stuff you need. So if I said, “Hey, you need new shorts, great, you got birthday money, go buy shorts,” then he would not have money to buy a $200 pair of sneakers or hoodie or whatever it is.

So we actually try to make big purchases like that something that are thoughtful no matter what the financial situation is, because as I’ve talked a lot about as a parent, We’ll come to Simon in a second, Dana Abramovitz has left the building, she has to go teach a class. But that being said, I’ve tried to explain to my son that I have money, he doesn’t have money, like he doesn’t have a job, he doesn’t pay rent so just because he got some money for his birthday, doesn’t mean it’s time to run out. We don’t have a lot of kids in my family. So he gets an excessive amount of birthday presents, at least from my father’s side of the family. But Simon Erickson, you’re a little early in the game here. You’re more like piggy bank and allowance stage. But as your child grows older, what what lesson are you as the leader of a investing company? I feel a lot of pressure about this, because of what we do. What lesson Are you hoping to impart?

Simon Erickson  52:12

All of those are fantastic lessons, the only one that I’ll add that hasn’t been spoken about yet is risk versus reward. When you’re young, you’re allowed to just kind of say, hey, I want to go after the sexiest fastest growing company out there, I want to go invest in this and make a ton of money, you’ve got to remember the risk side of that too. There is no free lunch in the stock market. That’s fine to take those big swings for the fences, but make sure you know what you’re getting yourself into. That would be my lesson.

Dan Kline  52:35

These are all great lessons. These are themes we’re going to talk about a lot. We’re gonna bring on some younger investors and talk about how they get started. And what their journeys like the stock market wasn’t something I’d heard of like when I was 17. I did not know what the stock market was other than newspapers had page after page of stock market listings.

But I couldn’t have explained to you what a stock was. It’s out there now there is much more transparency on what the stock market is, it is much easier to get into the stock market. Let’s take this last question from D and then we will hit our finisher question. “ml learning and deep learning workloads are growing exponentially. Which companies are poised to take advantage of this trend?” I won’t answer this one. I will throw it to Simon and then Steve because they are gonna sound a lot smarter than I would

Simon Erickson  53:31

Pytorch,  TensorFlow. Pick your AI platform that you want to talk about in cocktail parties. Now. Steve has been doing this for 20 years. I know that, you know a better than most out there, Steve, but this is no doubt. Workloads are moving to the cloud. And they’re starting to use AI to take advantage of more information that’s available. So which companies are primed to take most advantage of this trend? I mean, can we put up 7investing.com/subscribe at this point. Follow Steve’s picks, which are basically a lot of them, at least based on AI. Steve, you had an AI as a service company that we were talking about not too long ago. I mean, like we’ve got a collection of picks, maybe we don’t reveal all of them right here. But I know that opportunities that are out there for sure.

Dan Kline  54:12

So you actually took this exactly where I wanted you to take it because what you get from the subscriptions is you get that answer you get the what is our topic in travel in AI and machine learning. And if you subscribe and you look at the site go How the hell do I find that you send an email to info@7investing.com and as a subscriber? Steve answers that question and says, well I’ve picked these few.

The other thing I will really warn people about because I think we’re all guilty of this. There is no one magic company in this space. Everyone in 5G and machine learning and AI they they want us to give this like company they’ve never heard of that’s going to be this like, you know 100 bagger and that happens. But what’s more likely is you’re going to own five of Steve picks seven of Steve’s picks, whatever it is, and a percentage of them will do very, very well, we can identify who’s likely to win, we can’t always identify every winner and how big they’re gonna win. Steve, I’ll give you the last word here.

Steve Symington  55:09

Yeah. I mean, the other thing that I’ll note is there are literally hundreds of ways as an investor, you can take advantage of machine learning and deep learning workloads. I mean, you could invest in the companies that provide the internet infrastructure that will support a lot of the cloud computing efforts, you can invest in chipmakers. That’s, they’ll create chips that are well suited to machine learning and deep learning tasks, you can invest in the software as a service companies on that side of things.There are a lot of different ways.

And then, like Simon mentioned, you know, some of the a lot of the companies that are scorecard that we picked for this reason, exactly. Big Data companies. So I won’t single out, you know, just which companies are primed to take advantage of this trend, as you asked, because there are so many. And I mean, literally dozens of fantastic investment opportunities. And I think part of what we do at 7investing for subscribers is determine when it’s timely to to add, you know, or open or add to position in certain companies. And so that’s a that’s a loaded question. And we can spend multiple weeks talking about that question, particularly so pretty broad.

Dan Kline  56:19

Gregory Speara says, “tomorrow can’t wait.” Yeah, I was text messaging with a, an investor. We all respect a lot and he said to me at one point, “You guys are doing it right.” And I really feel that way, our service to our members, our ability to sort of help people make that that jump. We’ll check Max Lucas’s comment, then we will go to our finisher I’ll let Matt Cochrane lead the finisher process. “As a younger investor tools like and investing is what got me involved with investing also zero commission trades and Robin Hood. I know Robin, it could be controversial, but I learned some great lessons.”

I don’t recommend you go to Robin Hood, only for customer service reasons. There are all sorts of opportunities to get zero commission trades. There are platforms like ours that can help you with how to trade. I personally use TD Ameritrade. If I was signing up now I think I’d use Schwab because they they sell slices of stocks. I just signed up with Coinbase to in theory, buy crypto which I have never done. But I wanted to see a process of it. But the finisher Sam Bailey, if you want to bring it up is actually a question Matt Cochrane asked on Twitter. Matt, feel free to read the question and give your thoughts first.

Matt Cochrane  57:32

Yeah, so as we all know, the big tech companies that we’re all so familiar with, they all reported earnings this week. And they all reported great earnings. So out of those stocks, like how many do you directly own, not through indexing? And you know, I am on four out of five, I don’t think it’s a surprise out of anybody who follows me that I’m bullish on most of these names.

Dan Kline  57:55

Yeah I have exposure to all of these not directly, Simon Eric’s and how about you?

Simon Erickson  58:04

Yeah, big tech. Big tech continues to crush it right, Matt? I mean, this is one that it seems like every trillion dollars keeps adding another trillion. We were talking not too long ago about the first companies reaching a trillion dollars and are at $2 trillion and $3 trillion. Now we’re going to be soon talking in a couple of years about which companies are worth $10 trillion, big tech companies continue to perform in the stock market. It’s very impressive.

Dan Kline  58:24

And the point of this wasn’t necessarily to talk about these companies. I think the underlying point that this poll answers is that as much as you could talk about valuations and company is that winners win. Is that good companies historically. Now, can you stop being a good company? Yes, IBM maybe has stopped being a good company. I hate to pick on them. They’re super nice. Their public relations people are really wonderful. But they’ve obviously stumbled they’ve made some mistakes.

Some of the great computer makers have over the years stumbled so like Dell, which has gone back and forth on on public markets, but the true titans tend to be the true titans. I don’t know who watched the NFL Draft last night Simon I know you did so I’ll close out with a little bit. Did you notice how much Trevor Lawrence looks like the blonde quarterback in Remember the Titans? that was all I could think about was that that he was like he looked like the California dude.

Matt Cochrane  59:18

The California kid, yeah.

Dan Kline  59:22

With that if you’d like to get in touch with us that is info@7investing.com. Question about your membership. Questions about how to use your membership. We do a call on the third Friday of every month for new members. But if you sign up tomorrow, and have questions about our May picks and how to use them and how to use past picks? We’re happy to answer those. A lot of them will have sort of already have the answer so it won’t be a big thing for Steve to do. Steve don’t plan on having any fun tomorrow. It’s gonna be a long day with email.

If you would like to interact with us on social media. Please don’t share picks if you’re a member. That is @7investing. We are very active. I have my phone in my hand like 80% of the time, and I love talking to all of you. Today I had a great exchange with someone about working conditions at Amazon today that sort of gave a different perspective. So we are always happy to talk to people. No trolls, we keep it positive. We like to be upbeat here at 7investing. For the entire 7ivesting team minus Maxx Chatsko, who was of course, on assignment. For Anirban who did this taped. We appreciate you watching. We will see you live on Monday. Thank you.